The U.S. Monetary System is a Ponzi Debt Scheme

by Jim Thomas, Publisher of Media Bypass Magazine, 1998

The way it was:

Congress enacted the Coinage Act in 1792, under Constitutional authority, for weights and measures, Gold and silver coins being the money of account for the United States, had real value and could be utilized to pay all debts. Needless to say when a debt was paid for it was wiped off the books and no longer existed in any form. A value was given for an equal value. Congress set the standard for a dollar as 24.75 grains of pure gold or 371.25 grains of pure silver. Of course, paper certificates were printed that could be exchanged for either gold or silver coins.

The paper (warehouse receipts) was much easier to carry and use in commerce because of the weight. While the paper money was redeemable, it was not truly a warehouse receipt because there was always more paper circulating than bullion in warehouses. People could take their silver or gold to a government mint and have it coined to US standards. Thus people could create and own their own money. They could pay their debts with gold and silver or barter with something of equal value.

During the Great Depression, caused by the bankers, most merchants had to barter or close their stores. I grew up on a farm during the depression years when money was very scarce. We took wheat to a local flour mill and obtained flour. we took corn to a grist mill for meal and feed for chickens. The miller took a small portion for his work and profit. Eggs were bartered for coffee and other staples needed at the local grocery stores. We had plenty of everything we needed but few luxuries.

In 1913 when the private Federal Reserve banking system was established, it had backing in bullion of only 40% of the paper money in circulation, and this soon dropped to 25%. Thus inflation was planned right from the start of modern-day banking. Inflation is good for bankers and good for government--it is taxable! If it were not good for them, then you could bet your boots that we would not have it! We live in a commercial world driven by greed and not the public good or welfare.

It was during that period of time that Socialism made great strides forward in the USA. The two great "bankers wars" were responsible for major changes effecting every individual in this country. They even made a democracy out of a Republic and President Roosevelt officially declared bankruptcy for the United States Government.

The way it is:

Today, while Congress sits as Trustees in bankruptcy, we have no money in circulation that has any value. The coins are clad and consist of the cheapest metals. The paper is not a warehouse receipt and therefore is not redeemable for anything. The paper is worth just what someone conceives it to be worth and that is changing almost daily. A shopping trip to your grocery store will verify this to be true. Agreed that supply and demand for certain goods will affect their values, but that is not the reason your new car prices go up each year, or the box of cereal that has doubled in price but halved in amount contained in the box.

As mentioned earlier, inflation is planned into the non-monetary system that we use and call "dollars." If we called a Federal Reserve note a nickel it would be overpriced. If we call a dog's tail a "leg", would the dog have five legs? If you called water "air", could you then breathe in it? It is a shame that our children must attend a government-controlled educational system that does not teach them the definition of a "dollar." But they sure know what sex is all about and how to teach it. We know that a dollar is a unit of measurement of gold and silver and without the gold or silver, there cannot be a dollar. How can you have a mile without feet? How can there be a pound without ounces? How can there be a dollar without grams of gold and silver?

Our current monetary system is NOT Constitutional! If in fact it is our monetary system then certainly it does not comply with the Constitution. However, if it is their monetary system then it is Constitutional. You can see from Article I, Section 8, clause 17 that Congress does not have to comply with the Constitutional restraints within the jurisdictional areas of the Federal Government. They can enact any law they want and such is Constitutional. However, it would not apply within the states of the union. In the case of money, is not each state required to be on the gold and silver standard today? Yes they are. Your state Constitution requires that all debts be paid in gold or silver. What is the official money of account in your state? Why don't we make the States uphold the Constitution?

There are currently over 60 cities that are printing their own currency, I am told. Ithaca, New York is a prime example. They print "Ithaca Hours" that have a value of $10 for one hour of labor. It circulates as money locally and therefore tends to keep their money within the community. Everyone there can have money if they are willing to work for it and minimum wages is no problem. It's good for the community and no interest is being charged by the bankers. Once acquired, the bearer owns and controls his/her own money. It is legal but still does not comply with Constitutional restrictions for money. However it is based upon a sound principle in that it at least represents something of tangible value. States cannot have their own money system, but they can use a private money system even if it is a good one.

The way it needs to be:

We need to repeal the Federal Reserve Banking Act of 1913 and the Income Tax Act of 1913. It is no accident that both of these acts were passed around the same time. The income tax is needed to pay the interest on the mountains of debt that we have built up by using their debt based currency. Once we go back to a lawful monetary system, the Income Tax will no longer be needed. They belong together and should die together. They are both frauds on the American people.